Cupcake institution moves northward

Farnoosh Torabi | Special to amNewYork

January 28, 2008

Freshly baked cupcakes cover the countertops at Magnolia Bakery on Columbus Avenue on Friday morning, January 25, 2008. The new location opened last Saturday, January 19, 2008. (Kristen E. Olson / January 27, 2008)

There are few small businesses that can comfortably afford a $400,000-per-year lease in Manhattan.

There are even fewer ones that can do so selling cupcakes.

Magnolia Bakery, the West Village destination well-known for its butter cream-frosted baked goods, celeb appeal and its cameo in SNL's "Lazy Sunday" digital short, has recently opened a second domain on 200 Columbus Ave. at West 69th Street. Owner Steve Abrams, who is a 20-year Upper West Side veteran, always believed the neighborhood could embrace the business, but didn't quite anticipate the orders when it opened its doors on Jan. 19.

"It's been beyond expectations. Opening day, we ran out of product," Abrams said. "I think the volumes are going to be very similar [to downtown]. Just the way they manifest will be different. Downtown is touristy. ... They're not buying a dozen cupcakes. Here it's all families. People buy in bulk."

The success of Magnolia, he admits, is an anomaly. "If anyone thinks they're going to open up a cupcake shop and make millions they're kidding themselves," says Abrams, 50. "Magnolia is lucky. It's a very well-known brand and is able to do enormous amount of volume on its history, its quality and its product."

How is the new spot different? First, there may not be as many long lines wrapped around the block, as is the case with the Bleecker Street site. The space is twice the size of the West Village bakery. "We weren't looking for this much space but it's allowed us many more opportunities to expand and offer what the space commands," says Abrams, for example a sitting area for customers and a separate room for private parties. Already 15 families have inquired about reserving the party room.

What's also different is nearby competition. Three blocks north on 72nd Street sits Buttercup Bake Shop, whose centerpiece sweet is also the old-fashioned frosted cupcake. Coincidentally, the owner of Buttercup, Jennifer Appel, is a co-founder of Magnolia Bakery. In 1999, she parted ways with her business partner, Allysa Torey, to open Buttercup. Torey then sold Magnolia to Abrams in 2007.

But don't expect any flour fights to ensue between members of the cupcake community on the Upper West Side. Owners of both cupcake outlets are cheering each other on. "I wish them the best of success," said Abrams. Kara Bolduc, general manager of Buttercup on 72nd responds, "Magnolia will bring their appeal from the Village to the Upper West Side. We will bring ours."

Farnoosh Torabi's book, "You're So Money: Live Rich Even You're Not," is slated for release this April. Contact her at amSmallBusiness@gmail.com.

Upper West Side residents offer mixed sentiments on Magnolia's new bakery:

The neighborhood just got a whole 'lot sweeter...good thing I live so close to the park and the gym!" Jenn O'Hara, 27, ad sales

"Having lived on the Upper West Side for more than 25 years, I bemoan the loss of useful establishments like butcher shops, fish stores and the like. However, there is always room for more sweets--even better, if those sweets were affordable!" Carol Steel, 60, graphics director

"It's strange that they placed Magnolia bakery directly between our apartment and our gym." Sean Smith, 30, business analyst.

"Personally, I think the cupcakes are overrated, and they will have stiff competition with Bouchon Bakery and Crumbs nearby. However, it's better than having another bank or manicurist open up on the Upper West Side." Adam Kirschner, 35, agent.

"Now that Magnolia has opened up in our 'hood' we don't have to create exhausting expeditions down to the west village." Glynis Karp Greenberg, 41, fashion executive